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How are your rates and fees so much lower than other lenders?
 We do
not charge the typical lender fees that others charge such as
underwriting, processing, document preparation etc. Furthermore, the
owner of Commonwealth Mortgage, LLC is a lawyer and title insurance
agent and has his legal staff provide discounted services for closings.
The primary function of this affiliated law office is to provide the
highest possible level of service at the lowest possible cost for
Commonwealth Mortgage, LLC.
Another lender is offering to close for only
$500.00 in closing costs. Isn't this a better deal than Commonwealth
Mortgage, LLC?
While $500.00 for closing costs does sound appealing
don't forget to read the fine print. For closing costs that cheap,
something needs to give and that would be the rate. If you're only
paying $500 for closing costs, you can bet that the rate is higher and
the offer is likely only valid for certain loan sizes. When comparing
mortgage lenders, you should compare the costs, rate and Annual
Percentage Rate (APR). Commonwealth Mortgage, LLC can provide a no cost
closing for most of our borrowers simply by adding 1/8 to the rate
regardless of the loan size.
Why is the appraisal fee only $75.00?
The
appraisal fee can vary from $75.00 to $450.00 depending on the type of
appraisal and type of property. If the fee exceeds more than $75.00,
then Commonwealth Mortgage, LLC will lower the Attorney Doc Prep fee by
the same amount to keep the fees at a maximum of $1,500.00. When we say
$1,500.00 maximum closings costs, we mean it!
Why is the title insurance
only $200.00?
The owner of Commonwealth Mortgage, LLC is a lawyer and
title insurance agent and provides lender's title insurance at a low
fixed cost of $200.00 regardless of the loan size. The rate for title
insurance is $2.50 per thousand meaning you pay $250.00 for every
$100,000.00 borrowed. Thus, a $300,000.00 loan would cost $750.00 so the
bigger the loan the better the deal by only paying a fixed $200.00.
Are
there other costs beyond the $1,500.00 in closing costs?
If you escrow
for taxes and/or insurance, an escrow reserve will need to be
established and paid for at closing. This escrow will be estimated on
the good faith estimate and will be in addition to the closing costs. A
good estimate of what your escrow will be is to look at your current
mortgage statement and view the escrow account balance (assuming you
will be escrowing the same items - taxes and/or insurance). You will
also need to pay "prepaid interest" which is the remaining interest in
the month from the funding of your loan until the end of the month. For
example, if your loans funds whereby there are ten days left in the
month then you will have ten days of interest to pay. Please note that
waiting until the end of the month to close to get the prepaid interest
down is not worth the wait for a refinance because you will need to
carry your old mortgage until that funding date which is also accruing
interest and being added to the payoff. Purchase transactions will also
have an optional owner's title insurance added to the estimate as well.
Is there a charge for waiving escrows?
There is no charge to waive your
homeowner's insurance escrow. However, there is a charge to waive your
real estate tax escrow which is 1/4 of 1% of the loan. Thus, a
$150,000.00 loan would require the borrower to pay $375.00 if he/she did
not want to escrow real estate taxes.
Do you broker your loans?
We are
not brokering any loans. Commonwealth Mortgage, LLC has a dual
lender/broker license, however, we have found that rates and costs are
much lower when functioning as a lender. We have explored a variety of
opportunities to act as a mortgage broker and have not found more
competitive rates and costs for our borrowers.
Are you part of a
franchise?
No. Commonwealth Mortgage, LLC is not part of a franchise and
is headquartered in Woburn, MA.
Can I have a no cost closing?
Yes.
Simply add 1/8 to the rate and you can have a no cost closing.
Do you
offer loans for investment properties and jumbo loans?
Yes. Please call
for rates for these loans. The maximum fees of $1,500.00 will remain the
same.
Why do some mortgage companies quote low fees and then provide a
good faith estimate with more fees?
Some lenders and brokers quote their
fees only and do not quote third party costs such as title insurance
until the good faith estimate. If you're calling several companies for
the lowest rate and costs, ask if the fees quoted include all closing
costs.
Why are your interest rate and APR the same but most other
companies quote a higher APR than the interest rate?
Our rates are the
same as the APR because we do not charge any APR fees like most
companies. A common APR fee charged by most mortgage companies is an
underwriting fee. While we do have an underwriting function and cost, we
do not pass this cost on to the borrower.
What if Commonwealth Mortgage,
LLC incurs more costs beyond the $1,500.00 maximum?
If we incur
additional costs beyond the $1,500.00, this is not passed on to you. For
example, if we quote $75.00 for an appraisal fee and it costs $350.00
then we will reduce the Attorney Doc Prep fee or other fee to make sure
the total costs do not exceed $1,500.00.
Are you located in
Massachusetts or are you one of those out of state companies?
We are
located in Woburn, MA and welcome our customers to visit our office
during regular business hours and also welcome walk-in customers.
Are
the fees still guaranteed not to exceed $1,500.00 even on high balance
and jumbo loans?
Yes. The fees are a maximum of $1,500.00 regardless of
loan size.
How long does it take to close?
Many of our closings take
place in three weeks or less. Since we are a direct lender and have our
own underwriting staff, the approval process is done right here at our
Woburn office. We save time by not outsourcing our underwriting.
Is
there an additional charge if I want cash-out beyond my mortgage payoff?
No. While some mortgage companies charge a higher rate or fees for
"cash-out", Commonwealth Mortgage, LLC does not penalize you for
borrowing additional money. However, if you do not have good credit
please call to discuss as a lower credit score could impact your rate
and/or fees regardless if you want cash-out or not.
Is it true that Commonwealth Mortgage, LLC is owned and operated by an
attorney?
Yes.
One of the reasons why Commonwealth Mortgage, LLC has become known as
New England's most trusted mortgage lender is because Commonwealth
Mortgage, LLC is owned and operated by Michael J. Richards, Esq. who has
excelled in ethics, honesty and integrity and a trusted leader in the
mortgage and legal communities.
Will the attorney travel for the
closing?
Yes.
However, one way we keep our closing costs incredibly low is by having
many of our closings here at Commonwealth Mortgage, LLC. If the attorney
were to travel on every closing our costs would rise and this would be
passed on to you the borrower. To keep our operating costs low thereby
keeping costs to you low, we charge an additional $150.00 only to those
borrowers whose needs require the attorney to travel. When you come to
us, it’s like you doing some of the closing process to keep the costs
down. |
